The Pakistani rupee saw marginal improvement against the US dollar, appreciating 0.06% during the opening hours of trading in the inter-bank market on Wednesday.
At 10am, the local currency settled at 281.75, a gain of Re0.17 against the greenback.
On Tuesday, the Pakistani rupee closed the day at 281.92.
Internationally, the US dollar edged lower on Wednesday, extending a two-day slide against major peers, as President Donald Trump failed to convince Republican holdouts to back his sweeping tax bill.
Traders were also wary of US officials potentially angling for a weaker dollar at Group of Seven finance minister meetings currently underway in Canada.
Developments in Trump’s global tariff war, which have swung currencies wildly in recent months, have slowed considerably this week, even as the clock ticks down to the end of 90-day tariff respites for US trade partners in the absence of new trade deals.
While markets remain optimistic that the White House is eager to get trade flowing again on a sustained basis, talks with close allies Tokyo and Seoul appear to have lost momentum recently.
The US dollar declined 0.14% to 144.31 yen early in Asia’s day, and slipped 0.22% to 0.8264 Swiss franc.
Oil prices, a key indicator of currency parity, jumped more than 1% on Wednesday after reports Israel is preparing a strike on Iranian nuclear facilities, raising fears that a conflict could upset supply availability in the key Middle East producing region.
Brent futures for July rose 86 cents, or 1.32%, to $66.24 a barrel by 0003 GMT. US West Texas Intermediate crude futures for July climbed 90 cents or 1.45% to $62.93.
New intelligence obtained by the United States suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple US officials familiar with the matter.
It was not clear whether Israeli leaders had made a final decision, CNN added, citing the officials.
US crude futures rose by more than $2 a barrel on the news while Brent futures rose more than $1.
This is an intra-day update
American Dollar Exchange Rate